@Kris TohovitisI wouldn't recommend using your cash to pay off the mortgage on your primary residence since you can likely get a better return on that money by investing it.What's your buying criteria for the multi-family property?

@Leeling ChewAbsolutely, you should background check every adult (18 or older) who will reside in the property.

My name is David Hausner and I recently purchased a Single Family Residence with LoanGuys.com.

Investment Info:Single-family residence fix & flip investment.

I just completed an exchange of a single family residence in Scottsdale to a single family residence in Durango, Colorado. 

Far too many parks just 'give' a resident in the park free space rent to keep an eye on things and do light maintenance with no 1099 reporting. 

You could do something like what you want if it was your personal primary residence and even then the interest rate would be ugly. 

Typical cost for the setup would be in the $15,000 range which would include production of the Private Placement Memorandum, Subscription Agreement, and Operating Agreement, Investor Qualification Forms, as well as filing Form D with the SEC, and state “Blue Sky” filings in those states where your investors reside. 

We approach each eviction the same way and have our playbook every time a resident gets behind on rent. 

I completely agree with @Ashish Acharya's points about the cost-effectiveness of a HELOC and the potential credit implications if it’s secured by your primary residence.